After very good earning MEOH started with a nice gap. Now It defended this gap up and reversed at 48,4USD. Very nice set up- stop lose can be placed at 48$.-> small risk, high reward possible
The weekly chart stands at value with an overbought FI and red impulse. If the week closes like this, an evening star formation will be confirmed.
On the daily chart, there is a double top with a false breakout and divergence. I am a bit late to the game, time to enter short was on Friday or yesterday, but the RR is still acceptable.
Look for the previous swing...
Hi Fellow Risk Takers,
For those who trade using Chart Patterns, you will realize soon enough that real life charts look quite different from theoretical patterns mentioned in Chart Patterns literature.
Here is an "Perfect Short" idea where price action are clear as day and a few separate chart patterns come together to build a solid projection to go Short.
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The weekly chart is very bullish Explanations on the chart.
The daily chart has green impulse and a very bullish candle. Methanex, which is a methanol supply company, should go around 70$ again.
This is a paper trade.
A mid-term MEOH long trade.
IMHO a hammer patter meets 2 support lines: fibo ret and a 100 period EMA which is considered to be a strong support level earlier.
The sellers pressure is also doesnt look to be strong
